What could affect the price of IOTA?
IOTA is balancing growth in its ecosystem with challenges from the broader economy.
- Staking Overview – Nearly half (48.8%) of IOTA tokens are staked, helping stabilize the price, but new tokens created each cycle (767,000 per epoch) could cause inflation.
- Regulatory Partnerships – Collaborations with UK and EU trade compliance groups may boost business use of IOTA (IOTA Blog).
- Technical Signals – The price is below key averages (like the 200-day moving average at $0.18), indicating downward momentum.
Deep Dive
1. Staking & Tokenomics (Mixed Impact)
What’s happening:
IOTA offers an average staking reward of about 12.27% annually, which has locked up 2.3 billion tokens—almost half of all IOTA tokens. This reduces the number of tokens available to sell, supporting the price. However, the system creates 767,000 new IOTA tokens each epoch (roughly $126,000 worth daily), which adds inflation because these new tokens increase supply faster than tokens are removed through fees.
Why it matters:
While staking keeps many tokens off the market short-term, removing the 4.6 billion token cap (see Rebased docs) means more tokens can be created over time, potentially increasing selling pressure. If just 1% fewer tokens are staked, about 40 million tokens (worth $6.56 million) could flood the market.
2. Real-World Asset Adoption (Positive Outlook)
What’s happening:
IOTA’s TWIN Foundation is working with TradeMark Africa and the UK Cabinet Office to digitize over $50 billion in cross-border trade by 2026. In August 2025, the network handled 779,000 transactions—a 30% increase from the previous month.
Why it matters:
If this real-world asset (RWA) strategy succeeds, demand for IOTA tokens could grow significantly. For example, settling $1 billion in trade on IOTA would require about 6.1 billion tokens at current prices—more than the tokens currently available in circulation.
3. Technical & Derivatives Risk (Caution Advised)
What’s happening:
IOTA’s price is about 13% below its 200-day moving average ($0.19), with a Relative Strength Index (RSI) of 35, which is neutral but leaning bearish. Binance plans to reduce the collateral ratio for IOTA from 50% to 35% on September 5, 2025. This change could lead to bigger forced sales if prices drop (Binance announcement).
Why it matters:
The $0.142 price level, tested in April and June 2024, is a key support point. If the price falls below this, it could trigger automatic selling by trading algorithms. On the other hand, if the price climbs back above $0.174 (a technical retracement level), it might encourage traders to buy back in and cover short positions.
Conclusion
IOTA’s future price depends on how well it can grow enterprise partnerships before inflation from staking rewards reduces token value. The upcoming Binance collateral changes on September 5 and the TWIN Foundation’s expansion in Q4 are important near-term events. Watch the staking ratio and weekly transaction numbers closely—they will give clues about IOTA’s direction.
What are people saying about IOTA?
The IOTA (IOTA) community is divided between excitement about its technology and doubts about its price. Here’s what’s currently happening:
- Traders are watching the $0.17 resistance level after a strong 22% price increase last week.
- The launch of Hierarchies Alpha is generating interest as a new solution for building trust in Internet of Things (IoT) networks.
- Despite recent upgrades and staking rewards, adoption is slow, causing some disappointment among supporters.
Deep Dive
1. @CryptoSignals: Bullish trading setups aim for $0.2150
"IOTA holds above $0.2080 support; entry at $0.2090 with stop below $0.2040."
– CryptoSignals (12.3K followers · 45K impressions · 2025-08-17 04:29 UTC)
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What this means: Traders are optimistic in the short term, focusing on the price range between $0.2080 and $0.2150. However, if the price falls below $0.2080, it could drop further to around $0.14.
2. @IOTA: Hierarchies Alpha launches to improve trust in IoT
"Model who’s trusted, for what, and under what conditions – programmable and verifiable."
– IOTA (289K followers · 2.1M impressions · 2025-08-19 13:18 UTC)
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What this means: This new feature aims to help businesses build reliable IoT networks by clearly defining trust relationships. While promising for long-term growth, it hasn’t yet had a big impact on IOTA’s price.
3. @CoinJournal: Challenges after the Rebased upgrade
"41% price drop since May 2025 despite 13% staking yields; transactions down 86%."
– CoinJournal (Verified outlet · 650K monthly readers · 2025-06-25 13:39 UTC)
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What this means: Even with technical improvements and attractive staking rewards, IOTA is seeing less developer activity and fewer transactions, which is putting downward pressure on the price.
Conclusion
Overall, opinions on IOTA are mixed. Traders are focused on key price levels—watching for a breakout above $0.17 or a drop toward $0.14—while developers continue to build tools like Hierarchies and TWIN networks aimed at enterprise IoT applications. Keep an eye on whether IOTA can sustain a move above $0.17, as this could signal positive momentum. However, the slowdown in developer engagement remains a concern.
What is the latest news about IOTA?
IOTA is managing changes on exchanges and expanding its ecosystem while aiming to become part of global trade. Here’s the latest update:
- Binance Lowers IOTA Collateral Ratio (September 1, 2025) – The required collateral dropped from 50% to 35%, affecting traders who use borrowed funds.
- Rebased Upgrade Boosts Network Value (August 17, 2025) – Total Value Locked (TVL) jumped to $36 million, with staking rewards at 13%.
- Upbit Pauses IOTA Deposits and Withdrawals (August 13, 2025) – Temporarily stopped during network upgrades to ensure safety.
In-Depth Look
1. Binance Lowers IOTA Collateral Ratio (September 1, 2025)
What happened:
Binance, a major cryptocurrency exchange, lowered the collateral ratio for IOTA from 50% to 35% for users trading with Portfolio Margin Pro. This change took effect on September 5, 2025, and means traders now need to put up less collateral to borrow funds for IOTA trades.
Why it matters:
This adjustment reduces the amount traders can borrow against their IOTA holdings, which may lead to less leveraged trading. It also means higher risk for traders who are over-leveraged, as their positions could be liquidated more easily. Still, Binance’s move suggests confidence in IOTA’s price stability after recent upgrades. (Binance)
2. Rebased Upgrade Boosts Network Value (August 17, 2025)
What happened:
IOTA’s recent software upgrade called Rebased led to a big increase in the network’s Total Value Locked (TVL), reaching $36 million—a 260% rise since July. This growth is driven by new smart contracts using MoveVM technology and attractive staking rewards of 13%. Monthly transactions also increased by 30%, hitting nearly 780,000.
Why it matters:
The rise in TVL and transactions shows that more developers and users are adopting IOTA for decentralized finance (DeFi) activities. While IOTA is still smaller compared to major blockchain platforms, technical analysis suggests its price could rise from $0.27 to $0.50 if momentum continues. (Crypto.news)
3. Upbit Pauses IOTA Deposits and Withdrawals (August 13, 2025)
What happened:
Upbit, a popular exchange, temporarily stopped IOTA deposits and withdrawals during network upgrades to make sure wallets remained compatible. Trading of IOTA continued during this time, and services resumed after confirming system stability.
Why it matters:
This pause highlights the challenges exchanges face when upgrading blockchain networks but also shows their commitment to protecting user funds during important updates. (CoinMarketCap)
Conclusion
IOTA is making technical progress with its Rebased upgrade while exchanges adjust their policies to manage risk. Staking and DeFi activity look promising, but margin traders will need to adapt to tighter borrowing rules. The question remains: will partnerships like the TWIN Foundation help IOTA move beyond speculation and into real-world use?
What is expected in the development of IOTA?
IOTA is making important progress with these key updates:
- Governance Vote (August 20, 2025) – A proposal to allocate $50 million for infrastructure through the Tangle DAO.
- Validator Expansion (Q4 2025) – Increasing the number of validators from 80 to 120 to improve network security.
- UK Trade Solution Launch (Late 2025) – Rolling out a government-supported digital system to streamline supply chains.
In-Depth Look
1. Governance Vote (August 20, 2025)
What’s happening: Proposal SGP-0012 aims to invest $50 million from IOTA’s treasury into the Tangle DAO Fund. This money will support developer grants, incentives for liquidity, and partnerships with businesses. This comes after the Rebased Mainnet has shown strong stability, handling 170 million transactions since May 2025 (IOTA Foundation).
Why it matters: This funding could speed up IOTA’s growth by attracting more developers and businesses. However, the success depends on enough community members participating in the vote—currently, only 38% have voted.
2. Validator Expansion (Q4 2025)
What’s happening: The validator committee will grow from 80 to 120 members. This builds on the August upgrade (Protocol v10), which increased transaction capacity by 40% thanks to a new sequencing algorithm (IOTA Node Update).
Why it matters: More validators mean a more secure and decentralized network, which is attractive to institutions. On the downside, increasing validator rewards might reduce the value of tokens, but staking still offers a healthy 13.5% annual return.
3. UK Trade Solution Launch (Late 2025)
What’s happening: IOTA’s TWIN Foundation will introduce Internet of Things (IoT)-based trade tools for the UK government. This system will digitize customs processes for poultry imports from the EU. This follows successful pilot programs in Kenya (TWIN Foundation).
Why it matters: This real-world use case in a regulated industry could increase demand for IOTA tokens. While regulatory challenges exist, partnerships with organizations like the Institute of Export and International Trade help ensure compliance.
Conclusion
IOTA’s plan combines technical improvements, governance changes, and practical trade applications. The upcoming Tangle DAO vote and UK rollout are key near-term events. The big question is whether increasing validator participation will keep the network secure as more users adopt the technology.
What updates are there in the IOTA code base?
In September 2025, IOTA’s software received important updates focused on testing new ways to improve network speed and making tools easier for developers to use.
- Starfish Consensus (Sept 10, 2025) – A new experimental protocol designed to help the network perform better under tough conditions.
- CLI Enhancements (Sept 10, 2025) – Added commands for managing IOTA domain names directly from the command line.
- Wallet UX Fixes (Sept 3, 2025) – Fixed display problems with long asset names in the wallet interface.
Deep Dive
1. Starfish Consensus (September 10, 2025)
Overview:
The Mainnet v1.6.1 release introduced Starfish, an experimental way for the network to reach agreement faster by separating how block headers and data are shared. This helps reduce delays when the network is under heavy load or facing attacks.
What this means:
This update is promising for IOTA because it could lead to quicker transaction confirmations and more reliable performance, especially for Internet of Things (IoT) devices and business applications. However, Starfish is still being tested and is not yet active on the main network.
(Source)
2. CLI Enhancements (September 10, 2025)
Overview:
The new software includes IOTA-Names command-line tools, allowing developers to manage decentralized domain names (like .iota addresses) directly from their terminal.
What this means:
This makes it easier for developers to build and manage identity and asset systems on IOTA, supporting the growth of the ecosystem. While it may not affect the price immediately, it’s a positive step for wider adoption over time.
(Source)
3. Wallet UX Fixes (September 3, 2025)
Overview:
The Wallet v1.3.0 update fixed issues where long asset names would not display properly and improved how the wallet handles certain data requests.
What this means:
These changes don’t impact price but improve the user experience by reducing errors when managing NFTs and simulating transactions.
(Source)
Conclusion
IOTA’s latest updates focus on making the network more scalable with Starfish and improving developer tools with CLI enhancements, supporting its goals in IoT and enterprise markets. While these changes may not immediately affect the price, they strengthen IOTA’s foundation for long-term growth. The key question now is how Starfish’s test results will influence validator participation in the last quarter of 2025.
Why did the price of IOTA fall?
IOTA (IOTA) dropped 4.68% in the last 24 hours, underperforming the overall crypto market, which fell by 2.15%. This decline is due to a mix of technical challenges, changes in exchange policies, and slow network activity.
- Leverage Changes on Binance – Binance lowered the collateral ratio for IOTA, forcing some traders to reduce their positions.
- Technical Indicators Show Weakness – Oversold signals and bearish momentum suggest the price may continue to struggle.
- Network Activity Remains Slow – Despite a recent upgrade, user activity on the IOTA network has not picked up significantly.
In-Depth Analysis
1. Exchange Policy Changes Affecting IOTA
What happened:
On September 5, Binance reduced the collateral ratio for IOTA from 50% to 35% for users with portfolio margin accounts (Binance announcement). This means traders now need to put up more of their own money or reduce their leveraged positions, which likely led to increased selling pressure.
Why it matters:
Lower collateral ratios limit how much traders can borrow, increasing the chance of margin calls or forced selling during price drops. Since IOTA has already been trending downward (down 23% over the past 60 days), this change added to the selling momentum.
What to watch:
Keep an eye on any further changes to leverage rules from exchanges and shifts in trading volumes or open interest in IOTA derivatives.
2. Technical Signals Point to Continued Weakness
Current status:
IOTA’s price is below key moving averages—the 7-day average is $0.181, and the 30-day average is $0.189. The Relative Strength Index (RSI) is at 24.07, indicating the asset is oversold. The MACD indicator is also negative, showing bearish momentum.
What this means:
An oversold RSI can sometimes signal a price rebound, but the negative MACD suggests sellers still dominate. The immediate support level is around $0.1659 (the lowest price in the last 24 hours). If the price falls below this, it could test the 2025 low near $0.142.
3. Slow Network Growth Raises Questions
Background:
IOTA launched its Rebased upgrade in May 2025, aiming to improve smart contract functionality. However, network activity has slowed. In August, monthly transactions dropped by 86% to about 621,000, and the total value locked (TVL) in the network is $36 million, which is low compared to other major blockchain platforms.
Why it matters:
Lower network activity weakens the case for IOTA’s growth potential based on its smart contract features. On the positive side, staking rewards of around 13% (source: Nansen) might encourage holders to keep their tokens, providing some price support despite weak short-term demand.
Summary
IOTA’s recent price drop is driven by a mix of exchange-driven selling, technical weakness, and slow adoption of its upgraded network. While attractive staking rewards offer some stability, regaining the $0.17 level (the 200-day moving average) is important to improve market sentiment.
Key question: Will IOTA hold the $0.165 support level, or will Bitcoin’s growing dominance lead to further declines in altcoins like IOTA?